New Novements of Russia in Accepting Cryptocurrency
Posted On 02/06/2018
Bitcoin and other cryptocurrencies could be legalized in Russia
According to a local report of Russia, The Russian Ministry of Finance has drafted a bill to legalize the trading of cryptocurrencies on some exchanges which are approved by them. The government is seeking to create more supervision surrounding cryptocurrencies.
lexei Moiseev – Deputy Finance Minister said: “This is about the fact that buying and selling [of cryptocurrencies] will be somehow standardized. The general idea is that it will be necessary to buy and sell on official exchanges, as it will be declared, it will be legalized.”
The purpose of the bill is to allow open cryptocurrency trading and investment within Russia. Meanwhile, Abu Dhabi announced guidelines on cryptographic currencies, and China and Korea banned ICO entirely and strengthened control over encryption currency transactions, each country began to establish its own policy, other countries have started issuing their own legalization or banning of cryptocurrencies.
In this period, the Ministry of Finance is choosing the exchanges to give their approval.
Originally, the country was willing to prohibit the cryptocurrencies entirely due to fears leading to illegal business or misuse of terrorism funds. However, as the cryptocurrencies become widespread globally, it became a policy to use the virtual currency within the framework on the premise of establishing certain legal standards. It is revealed that by establishment of regulation, the reduction of crime risk such as fraud, and tax revenue by cryptocurrency transactions can be expected.
Russian government plans to create their own multinational cryptocurrency named “Cryptorouble”
Russia’s President – Vladimir Putin spoken about his aim of creating a multinational cryptocurrency. Putin has worked with Vitalik Buterin – Ethereum’s co-founder and experts from 15 countries in the Blockchain Technology and cryptocurrency market. They named the cryptocurrency “Cryptorouble”.
After the meeting with Vitalik Buterin, the president has ordered his cabinet officials to devise a framework for establishing and regulating a digital currency within Russia.
By using this cryptocurrency, Russia aims to unify economies from Asia, Eastern Europe, Africa and South America by the use of Blockchain Technology. The new multinational cryptocurrency would be used by countries in BRICS (Brazil, Russia, India, China and South Africa), EEU (Eurasian Economic Union) and others.
The idea behind the initiative is to reshape the Member State economies through using cryptocurrencies.
Earlier this year, as Sergei Glazev – an economic adviser of President Vladimir Putin stated on the Financial Times, the cryptocurrency would serve as a “useful tool” to evade western economic sanctions. He explained: “This instrument suits us very well for sensitive activity on behalf of the state. We can settle accounts with our counterparties all over the world with no regard for sanctions.”
Also, unlike existing digital currencies, Cryptorouble can be said to be suitable for the Russian government which conducts political activities of high confidentiality, as there is limited amount and it is impossible to mining and equipped with a closed system.
The adviser also pointed out that the “Cryptorouble” would be equivalent to the Rouble but it will be “restricted in a certain way” which will allow the Kremlin to track it moves.
The trend in Russia mentioned above is believed that the legalization of cryptocurrency was a preliminary stage of issuance of its own cryptocurrency in the future.
Currently, the currency that is the basis of the world economy is the US dollar, but the fact that Russia is the first to issue their own cryptocurrency in the world, it cannot deny the possibility the fight for hegemony by the state over the cryptocurrency and the formation of a new economic sphere against the United States.
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